Rising chicken prices force lower-income people to cut down on protein

Infograph: TBS

The skyrocketing price of broiler chicken and eggs, the cheapest and biggest sources of protein in the country, is forcing low- and lower-middle-income people to curb their protein intakes.

In different markets in the capital, broiler chickens are selling at Tk225-Tk230 per kg, while the price of broiler eggs has jumped up to Tk140-Tk145 per dozen.

According to the Trading Corporation of Bangladesh (TCB), the price of broiler chicken and eggs has increased by 39% and 30% respectively compared to the same time of the previous year.

Traders say the market situation hints that the price could rise even further during Ramadan.

Meanwhile, broiler producers have attributed the recent price surge to a hike in feed prices, which was caused by an increase in the cost of raw materials triggered by the dollar crisis fueled by the Ukraine war.

Consumers complained that the prices of eggs and chickens have increased at a time when all consumer goods are being purchased at high prices in the market.

Al-Amin, private employee and resident of the Khilgaon area of Dhaka, said his four-member family used to eat four eggs every morning with breakfast. However, the habit has changed due to the recent price hike in the market.

Now, they do not afford to eat eggs at breakfast anymore. They only eat eggs several times a month with other meals when they are cooked as curry.

"Due to the fact that commodity prices have risen while my income has remained the same for nearly three years, I have had to alter my food choices," Al-Amin told The Business Standard.
Altaf Mahmud, grocery stall owner in Badda, reported a sudden decrease in egg sales in his shop.

"I used to sell 250-300 pieces of eggs every day. Now it has come down to 150-200 pieces due to higher prices," he said.

Khorshed Alam, salesman at Rupali Broiler House in Segunbagicha kitchen market, told TBS, "Many customers decline to buy chickens after knowing the price. Some customers, who used to buy 3 kg to 5 kg meat at a time, are not buying more than 2 kg."

He said that the poor customers who used to come to the shop are no longer buying broiler chickens.

Reason behind the price hike

As per the Bangladesh Poultry Association (BPA), currently, the maximum production cost of chicken is Tk148 per kg. On the other hand, the production cost of an egg is Tk11.11.

Broiler chicken and egg producers say the main reason behind the production cost hike is high feed prices which have jumped to Tk3,650 per 50 kg. A year earlier the price was Tk2,900 per 50 kg.
The production cost of each one-day old broiler chicken is between Tk25-Tk30 per day which is now selling for Tk60, they said.
On 9 February, the feed companies increased the price by Tk2 per kg, they added.

Sumon Hawlader, president of the Bangladesh Poultry Association, claims that the current price of eggs and chickens is not normal at all.

"Farmers are selling chicken at Tk180-190 per kg, which is not a reasonable price. It would have been fair if the farm level price was Tk160-Tk165 per kg and the consumer level price was Tk185-Tk190 per kg," he told The Business Standard.

Chicken producers say even a few years ago when the production cost of chicken was around Tk140 per kg, they could not get a price more than Tk120 per kg. Many people quit businesses during that time after counting losses.

Abu Luthfe Fazle Rahim Khan, managing director of Aftab Bahumukhi Farms, told TBS, "From the third quarter of 2019 until January 2023, there was a prolonged period where production in the industry exceeded demand by 15% to 27% for most of the time. It forced many people involved in different levels of the industry to exit the market leading to the current situation of an undersupply."

"The feed industry has been facing severe problems since March 2022, although the situation was not as bad before that period," he added.

According to BPA, out of 1.6 lakh farms across the country, more than 60,000 farms are not in production at present.

BPA President said that the price started to increase at a time when the control of production went from the general farmers to the contract farmers of corporate companies.

"Through the contract farmers, corporates control around 20% of the market. Now, they are profiting by increasing the price at will," he said.

He demanded the government fix the price of the chickens from the producers to retail levels.

He also urged the government to investigate any possible manipulation of the current price.

Nazrul Islam, secretary of Feed Industries Association Bangladesh, "Many companies have now stopped production because they could not adjust to the rise in feed raw materials prices due to the Ukraine war."

According to the Department of Livestock Services (DLS), 2,335 crore eggs were produced in 2021-22 FY. Sector insiders say generally 4-4.5 crore eggs are produced in this country every day.